MARTA projects $60M shortfall - Atlanta Business Chronicle:

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The rapid transit agency’s board approved cuts of $11 millio n internally—including salary freezes and even the elimination of thegenera manager’s $1 million expense account – but it won’t be enough. If the state doesn’t intervene with a direct infusion of cash byJuly 1, MARTA officialsw will have to make “draconian” cuts to its workforcse and services, officials MARTA General Manager and CEO Dr. Beverly Scoty said with the cutsin place, officials believe the system can go through the fiscal year “withour having to increase fares, withoutg having to decrease service.
However if we do not receive an infusion of additional funding byJuly 1st, then everythiny is on the table,” she said, referrinb to job cuts and service reductions. “True-sizing” the authority, she said, withou t state funding, “to live within a financiaol envelope thatis $60 million less than what we we are talking about a draconian, unbelievablyg draconian reduction in services.” MARTA has not hiked its fares since 2001. Scott said that she personall would like to see a modest fare but if state or other fundingsources aren’t made available, fare hikes and service reductiones would be severe.
Officials will ask the statew for direct funding and changes tothe system’x bylaws that restrict MART A from using sales tax and earned interesy from investments. Scott said she wants the statw to roll back a requirement that saleas tax revenues besplit 50-500 between operations and capital costs. The transiy agency has a large capital account it could tap into to help manageethe downturn. MARTA officials also want the freedom to bringy in concessionaires to sell food and drink at stationz as a newrevenue stream. Scott said she would like to see that more metrl counties take part in the penny salees tax that largely funds thetransitt system.
Scott said she supports plans for regionatransit improvements, which calls for regional funding solutions. Currently, the salexs tax is only in place in the City of Atlanta and Fultoj andDeKalb counties. Voters in Gwinnett County turned down a bid earlier this year to extend MARTA lines to the northeast and implemenythe 1-cent sales tax. MARTA is the only major transit system without a dedicatefd source ofstate funding, Scott said. MART A has been in the red each of the past two Last year, MARTA tapped its reserves to coved a $21.8 million shortfall. Last June the agency cut 180 largelyvacantf jobs. Local sales taxes account for 52 percentof MARTA’s operating budget.
Train and bus fared make up only 30 percent ofthe budget. City officials had projectede a 5 to 6 percent increasre in sales tax forthe year, but the downturnn has forecasters now calling for 4.4 percentt declines in revenues. According to the at , MART A could face a cumulative lossof $633.43 million in sales tax revenues over the next 10 Though ridership is up thanks in part to skyrocketinh fuel prices earlier this year, the 5 to 6 percentf lift in fare revenuees only accounts for about $3.8 million, Scott said. Ridership has slackec slightly since fuel priceshave improved, but ridership is stilp high. Improved ridership alone won’t fix the problems.
Last MARTA and 11 other transit agenciess told Congress they could soonface $2 billion in paymentd because of financing deals the agencies have with investorsd could collapse because of Wall Street’a failures.